The crisis explained by robots!

Seahound8

http://www.youtube.com/watch?v=vLniOkpl1QY

Ireland already 'has' the money. The banks have borrowed it - so they just dont pay it back. Clean without being so mean. Look I borrowed all this money and then I burned it so I'm sorry I can't pay you back but, listen, I won't do it again. And I appreciate that you'd like to swap the E90 bn in cheap loans from the ECB for more expensive ones from Germany, UK and the like but it's easier to have private(ish) sector banks default on interbank(ish) debt than have the Republic default on sovereign to sovereign debt in a couple of years. So, like I said, I'm sorry...pint anyone ?

Festus

... incompetent gobsh*tes...

...clueless international media...

Splendid stuff

Scofflaw

Except that almost immediately, the video claims that the Irish banks gambled the money away on complicated derivatives. That's the US subprime crisis, not the Irish banking crisis, which is very much simpler - loans against property that lost nearly all its value.

Not, I'm sure, that such a fundamental error would change the nature of the analysis.

amused,
Scofflaw

EastTexas

Scofflaw wrote: »

Except that almost immediately, the video claims that the Irish banks gambled the money away on complicated derivatives. That's the US subprime crisis, not the Irish banking crisis, which is very much simpler - loans against property that lost nearly all its value.

Not, I'm sure, that such a fundamental error would change the nature of the analysis.

amused,
Scofflaw

But that is precisely where they lost the majority of the money.
In speculation.
Puff.
I am the first one to admit that this originated from our bubble in the US.
But everybody and their uncle had their hands in the cookie jar, including Europe.
How else could it have spread.
That’s why a healthy portion our bailout money went to European banks, because all the banksters are connected.
Their current trick is get taxpayers to fund their misadventures in greed.

Blowfish

EastTexas wrote: »

But that is precisely where they lost the majority of the money.
In speculation.
Puff.
I am the first one to admit that this originated from our bubble in the US.

Irish banks had very little exposure to the US subprime market. In fact the major issues for Irish banks is nothing to do with non-performing mortgages at all and everything to do with non-performing loans to developers.

Granted, the global credit crunch didn't help, but the problems here are entirely home grown and had pretty much nothing to do with the US.

Festus

Blowfish wrote: »

Irish banks had very little exposure to the US subprime market. In fact the major issues for Irish banks is nothing to do with non-performing mortgages at all and everything to do with non-performing loans to developers.

Granted, the global credit crunch didn't help, but the problems here are entirely home grown and had pretty much nothing to do with the US.

Are\were US banks not exposed to collateralised Irish mortgage and\or corporate\developer loan derivatives?

I'm pretty sure that many EU, UK and Irish banks exposed themselves to collateralised US sub-prime mortgage derivates. Isn't that how the US collapse had an affect on us?

Not sure of the veracity but its a start:

http://trueeconomics.blogspot.com/2010/08/economics-25810-derivatives-time-bomb.html

Scofflaw

Festus wrote: »

Are\were US banks not exposed to collateralised Irish mortgage and\or corporate\developer loan derivatives?

I'm pretty sure that many EU, UK and Irish banks exposed themselves to collateralised US sub-prime mortgage derivates. Isn't that how the US collapse had an affect on us?

Not sure of the veracity but its a start:

http://trueeconomics.blogspot.com/2010/08/economics-25810-derivatives-time-bomb.html

Irish exposure to the US sub-prime market was piddling:

Eugene Sheehy's AIB has about €150m exposure to mortgage-backed securities and €111m to whole loans, according to its latest results. Bank of Ireland has no direct exposure to US subprime mortgages. However, the bank's latest results show that it has an €81m exposure to structured investment vehicles (SIVs) -- funds that borrow money with the intention of making a profit -- and an €8m indirect exposure to the US subprime market through collateral debt obligations (CDOs) -- investments backed by a pool of bonds, loans, and other assets.

Anglo, which is headed up by David Drumm, had a €63m indirect exposure to the subprime crisis, according to its latest results.

That's why a video that claims to explain the crisis, but starts off by claiming that what applied in the US, is talking through a part of the body not normally required by robots. Presumably the ones in the video were specially adapted for the part.

cordially,
Scofflaw

Seahound8

The video did make one error regarding the nature of the losses; however, the salient point is that is is wrong for the Irish people to be burdened with the losses incurred by the domestic banks. Quoting from a recent NYTimes article... Iceland let foreign lenders to its runaway banks pay the price of their poor judgment, rather than putting its own taxpayers on the line to guarantee bad private debts.
But what else can we expect from a cabinet that contains only one person who has ever run a business... and that was just a biking holiday company.
It is a shame that we have not had a single voice that has proved capable of rallying people to an alternative approach.